Bill Summary – FastDemocracy

Legislative Analysis
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ALLOW INCLUSION OF CERTAIN TOPICS DURING
                                                                                      http://www.house.mi.gov/hfa
COLLECTIVE BARGAINING UNDER PERA
                                                                                      Analysis available at
House Bill 4356 as enacted                                                            http://www.legislature.mi.gov
Public Act 143 of 2023
Sponsor: Rep. Brenda Carter
House Bill 4357 as enacted
Public Act 144 of 2023
Sponsor: Rep. Rachel Hood
House Committee: Labor
Senate Committee: Labor
Revised 4-30-24
SUMMARY:
           House Bill 4356 amends 1947 PA 336, the public employment relations act (PERA), to allow
           the inclusion of certain topics during collective bargaining for public school employees. House
           Bill 4357 amends the State School Aid Act to effectively reinstate certain recently repealed
           prohibitions on collective bargaining agreements (see Background, below).
           House Bill 4356 amends PERA to remove restrictions on collective bargaining negotiations
           between schools and employees for noninstructional support service contracts. Under the bill,
           the following subjects, which previously could not be included in negotiations when a
           bargaining unit that provides noninstructional support services can bid on a contract on an
           equal basis with other bidders, are no longer prohibited topics:
               • The decision to contract with a third party for the services.
               • The procedures for obtaining a contract.
               • The identity of the third party.
               • The impact of the contract for the services on individual employees or on the
                   bargaining unit.
           MCL 423.215
           House Bill 4357 amends the State School Aid Act to reenact section 164h of the act without
           including previous prohibitions on collective bargaining agreements entered into by a school
           district or intermediate school district (ISD) that include automatic payroll deductions for union
           dues 1 or methods of compensation that do not comply with section 1250 of the Revised School
           Code. 2
           MCL 388.1764h
BACKGROUND:
           Public Act 103 of 2023 (the school aid budget act for the 2023-24 fiscal year) repealed section
           164h of the State School Aid Act on October 1, 2023. Section 164h previously established a
1
    This change was made to PERA by 2023 PA 114.
2
    Section 1250 pertains to performance-based methods of compensation for teachers and school administrators.
House Fiscal Agency                                                                                     Page 1 of 2
       penalty in an amount equal to 5% of state aid if a district or ISD entered into a collective
       bargaining agreement that established racial or religious preferences, automatically deducted
       union dues from paychecks, conflicted with any state or federal transparency laws, or used a
       method of compensation that did not comply with section 1250 of the Revised School Code.
       House Bill 4357 was signed into law on October 3, 2023, as Public Act 144. As passed by the
       legislature and enrolled in June, the bill would have amended section 164h to strike out the two
       provisions described above pertaining to automatic paycheck deductions for union dues and
       unlawful methods of compensation. However, because section 164h was completely repealed
       before House Bill 4357 was signed, the bill has been determined instead to have added or
       reenacted the section in a different form, effectively reinstating the 5% penalty for districts and
       ISDs that enter into a collective bargaining agreement that establishes racial or religious
       preferences or that conflicts with transparency laws. The section now reads as follows:
           (1) Beginning October 1, 2017, a district or intermediate district shall not enter into a
               collective bargaining agreement that does either of the following:
               (a) Establishes racial or religious preferences for employees.
               (b) Is in conflict with any state or federal law regarding district or intermediate district
                   transparency.
           (2) A district or intermediate district that enters into a collective bargaining agreement in
               violation of subsection (1) shall forfeit an amount equal to 5% of the funds due to the
               district or intermediate district under this article.
FISCAL IMPACT:
       The bills would have an indeterminate, but likely minimal, fiscal impact on local school
       districts, intermediate school districts (ISDs), and public school academies (PSAs). Any fiscal
       impact for an individual district, ISD, or PSA would be directly related to the assumed costs or
       benefits of any new collective bargaining agreement under the provisions of the bills compared
       to the prior or alternative status of any collective bargaining agreement that prohibited certain
       subjects from being collectively bargained.
       Because House Bill 4357 amends and reenacts section 164h of the School Aid Act, the bill
       reinstates a penalty on a district or ISD that enters into a collective bargaining agreement that
       establishes racial or religious preferences for employees or is in conflict with any state or
       federal law regarding transparency. Any district or ISD found in violation of this section would
       incur a penalty equal to 5% of funds due under Article I of the School Aid Act.
                                                            Legislative Analyst: Holly Kuhn
                                                               Fiscal Analysts: Noel Benson
                                                                                 Jacqueline Mullen
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency                                             HBs 4356 and 4357 as enacted    Page 2 of 2
Statutes affected: 
Substitute (H-1): 423.215
Substitute (S-2): 423.215
House Introduced Bill: 423.215
As Passed by the House: 423.215
As Passed by the Senate: 423.215
House Concurred Bill: 423.215
Public Act: 423.215
House Enrolled Bill: 423.215